European markets ended mixed with change of upto half a percent. The European Central Bank launched its 60 billion euro-a-month ($66.3 billion) bond-buying program on Monday and euro zone finance ministers also discussed Greece’s reform plans.

AT HOME

After a gap down opening, benchmark indices extended the losses through the session to end with steep cut of 2%, registering the largest fall in two months. Sensex plunged 604 points to settle at 28845, while Nifty finished at 8757, down 181 points. BSE mid-cap and small-cap indices lost 1.3% and 0.9% respectively. Except a 0.3% rise in BSE Healthcare index, all other sectoral indices ended in red with Bankex and Power indices leading the tally with 3% fall.

China’s February CPI has come in at 1.4% Vs estimate of 0.9% while the PPI is down 4.8% as against the expectation of a 4.3% dip.

Asian markets are trading mixed with modest changes and SGX Nifty is suggesting a marginally higher opening for our market.

In yesterday’s report we had mentioned that 8860-8840 is the immediate support zone where 8841 is the 61.8% retracement level of the recent 8669-9119 upmove and that a breach of 8841 would open up the possibility of the retest of the 8670 bottom.

The benchmark broke the 8841 support in the initial trade and as feared plunged all the way to 8740 before closing at 8757. With this, the benchmark also broke 34-DMA placed around 8790 and trendline support placed around 8810.

Next support, as mentioned above, continues to be 8669. Immediate resistance on the hourly chart is placed around 8925, with the stop loss of which trading shorts can be held on to.